As you’ll be aware, the Financial Conduct Authority’s Consumer Duty sets higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first. Published in July 2022, the Consumer Duty goes further than the Treating Customers Fairly (TCF) framework by requiring FCA regulated firms to ‘act to deliver good customer outcomes’.
The Consumer Duty rules relate to four outcomes that represent critical elements of the firm to consumer relationship, which are instrumental in helping to drive good outcomes for customers:
- Customer Understanding: Customers receive communications they can understand.
- Products and Services: Customers receive products and services that meet their needs.
- Consumer Support: Customers get the support they need, when they need it.
- Price and Value: Customers receive products and services that offer fair value.
What we're doing
To further support you in meeting the FCA’s Product Governance Sourcebook (PROD) requirements, we provide more detailed information about how we assess Product Value and the outcomes of our Fair Value Assessments.
Following thorough analysis of the new Consumer Duty requirements, we’ve identified some areas of focus to further improve our approach:
We aim to have enhanced communications testing capability by the end of April, after which we’ll start seeking feedback from insurance customers.
We’ll also have a process in place to ensure we’re able to act upon any feedback appropriately and will start reporting against the new Consumer Duty outcomes from May onwards. The FCA have stated a deadline of 31 July 2023 for firms to adhere to the new Consumer Duty rules and we’re well on track to achieve this. We’ll continue to keep you informed on our approach to Consumer Duty.